Be The Master of Your Budget
Looking at your budget can be scary, especially if you habitually spend more money than you make. Instead of being intimidated by your money, and letting that fear control you, it’s time to take ownership. Becoming the master of your money will allow you to feel in control and stop feeling anxious every time you open your banking app. Check out these helpful tips for creating a budget that works for you.
Learn Your Options
As you start your budgeting journey, you’ll see there are multiple ways you can attack it. Whether you decide to use a budgeting app, create a digital spreadsheet, or use a pen and paper, you’ll want to think about what type of budgeting plan will work best for your lifestyle. A few types of budgets include the 50/30/20 system, the envelope method, and the zero-based budget. Depending on what kind of a spender you are already, you’ll want to pick a plan that gives you different amounts of leeway. If you start out with one and decide it’s not working for you, don’t shy away from switching it up.
Income Versus Outcome
Once you’ve decided what kind of budget you want to work with, you’ll have to fill it in. This will include all of the money you have coming in on a regular basis, as well as the money you plan on spending. Don’t forget to calculate your money based on your post-tax earnings, as your taxes are money that has technically already been spent. If you have income that is inconsistent, such as tip-work or a side hustle, try to estimate the average amount you will be earning. When in doubt, estimate on the low side of what you usually earn.
After calculating all the money you have coming in, it’s time to think about what’s going out. This is a good place to detail all of your regular spendings such as rent, utilities, credit card payments, subscriptions, grocery money, fun money, and money you plan to save. Try to be as honest here as possible! You want to learn an accurate measure of what you’re spending so that you can adjust it as needed.
Making Money Goals
Now comes the part where you can have a little fun. As you create your budget, you can create different areas of savings. You might decide to set a fund to treat yourself, including things like travel and shopping. Another great goal is to create a set of funds for investments. Creating an investment portfolio can help you to diversify your assets and reach higher money goals. A great example of an investment portfolio can be seen by Nicole Junkermann Investor, who maximized her earning potential through investing in a diverse set of companies globally.
While a budget may seem intimidating at first, taking control of your money will be an empowering move in your financial life. Learning to create a budget and stick to it can help you to get out of debt and achieve your money goals. Starting is the first step to achieving your financial goals!